The ED on Monday raided premises linked to Sresan Pharmaceuticals, the manufacturer of Coldrif cough syrup that allegedly caused deaths of children in Madhya Pradesh, and top officials of the Tamil Nadu FDA as part of a money laundering investigation, official sources said.
At least seven premises in Chennai are being covered by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA), they said.
The action came after the federal probe agency registered a criminal case under the anti-money laundering law, taking cognisance of police complaints filed against Sresan Pharmaceuticals in Madhya Pradesh and Tamil Nadu.
At least 22 children, mostly under the age of five, have died after being administered Coldrif in Madhya Pradesh.
Licensed in 2011 by the Tamil Nadu Food and Drug Administration (TNFDA), the Kanchipuram-based Sresan Pharmaceuticals continued operations unchecked for over a decade despite its dismal infrastructure and multiple violations of national drug safety rules, the Central Drugs Standard Control Organisation (CDSCO) has said.
The cough syrup was found to be "dangerously" adulterated with diethylene glycol (DEG), a highly poisonous substance.
The owner of Sresan Pharmaceuticals, G Ranganathan, was arrested by Madhya Pradesh Police on October 9.
Following the children's deaths, the Madhya Pradesh government suspended two drug inspectors and a deputy director of the FDA.
It also transferred the state's drug controller and ordered an investigation into the deaths, while police arrested a doctor from Chhindwara district on charges of negligence.
The Tamil Nadu government has also suspended two senior state drug inspectors and ordered the closure of Sresan Pharmaceuticals.